I’m beginning with a funny Ajit dialogue: “Isko liquid oxygen mein daal do; isay oxygen marne nahi dega aur liquid jeene nahi dega.”
Yes, Indian educational and non-educational publishers are now in the same situation — neither able to survive in this sector nor close down.
When the GST regime came into force, books were rightly kept outside its ambit for the benefit of readers. However, the inputs required to produce books — paper, cardboard, binding, printing (including royalty payable to authors) — were brought under GST. Repeated representations from publishers’ associations received no support or response. As a result, publishers continued to suffer, and the Covid-induced lockdown only worsened the situation, forcing many small publishers to shut shop. A case on this issue is already pending.
Since the announcement of GST 2.0 Utsav by the Prime Minister, automobile and electronic showrooms have been slashing prices, citing post-GST cuts. Ironically, no such announcements are heard from bookshops. Publishers—who play a vital role in promoting literacy—are unable to extend similar benefits to bookshops, readers, or even parents purchasing textbooks and notebooks for their children.
Though books themselves are exempt from GST, the inputs—paper, printing materials, and royalties—attract GST between 5% and 18%. Since publishers cannot claim Input Tax Credit (ITC) on these, they are forced to bear the entire burden, leaving them unable to pass on any relief to readers. Thus, the very purpose of exempting books from GST stands defeated.
Ironically, under GST 2.0, items such as study aids, atlases, and notebooks have been removed from GST. Earlier, when these were under GST, publishers could claim ITC. With their removal, that benefit has now vanished. To make matters worse, the price of paper—publishers’ main input—has risen by 18–20%, leading to further setbacks. Clearly, the GST framework has failed to benefit either publishers or parents, who are now forced to pay more.
It is good to see the Finance Minister and other Union Ministers visiting automobile and consumer durable showrooms to ensure owners are passing on GST benefits to customers. It would be equally worthwhile if the Education Minister—or any concerned authority—visited bookshops to understand why prices remain high and why GST cuts are not translating into benefits for the education sector. Surprisingly, even state ministers on the GST Council have not raised this anomaly: that the exemption on books is, in fact, not benefiting anyone.
I sincerely request the Finance Minister to correct this anomaly by allowing paper merchants, printers, binders, and transporters to exclude GST when raising invoices for book publishers, with appropriate checks to prevent misuse. Publishers play a vital role not only in human development but also in national development — and they deserve a fair, sustainable ecosystem to continue that mission.
